Q: What are some signs that you are being drawn into a health insurance scam?
A: Health insurance scams are on the rise as the economy slumps and confusion reigns over health care reform. It’s become one of America’s largest taxpayer rip-offs.
“Passage of the legislation designed to protect consumers ironically has given criminals ideas for schemes to swindle uninformed consumers,” says healthinsurance.org founder Charles Smith Dewey. “Now, more than ever, it’s ‘buyer beware.'”
You can avoid being a victim by watching for obvious red flags:
- Watch out for aggressive sales pitches that promise full health coverage if you “act now.”
- Don’t accept unsolicited insurance offers made by fax, phone, or e-mail
- Don’t provide bank account or credit card numbers to “get locked into” coverage.
- There is no “ObamaCare” plan marketed or sold by the federal government.
To avoid getting conned, call your state’s insurance department and ask if the company or agent is licensed to do business in the state and if any action has been taken against them.
Read more about health insurance scams.